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URL:  http://boards.fool.com/if-the-value-increased-significantly-before-the-28987383.aspx

Subject:  Re: Poll: Did your 401k recover from the 2008 de Date:  12/28/2010  3:43 PM
Author:  TMFPMarti Number:  67994 of 74759

if the value increased significantly before the rollover to Roth, I might have a paper gain, and I would have to pay the taxes on that gain at a high rate of 38% combined federal/state immediately at rollover time. This would be a short-term gain (less than 1 year) since I plan to do a rollover to Roth of my after-tax contributions every year.

ALL taxable distributions from retirement accounts are ordinary income, regardless of how the money got there.

Phil
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